Morocco Subsidiary

Companies expanding to Morocco need to establish a subsidiary in the country to start working. This lengthy process can take anywhere from a few weeks to a few months, and it includes plenty of fees throughout the numerous steps. However, Globalization Partners’ Morocco subsidiary outsourcing services can help you start working faster. We’ll use our existing subsidiary to hire employees who work on your behalf. We’ll also dole out compensation and benefits and help you start working in a few days instead of a couple of months.

How to Set up a Moroccan Subsidiary

Setting up a subsidiary in Morocco starts with understanding your business goals and location. Just as separate states have their own laws, Morocco subsidiary laws can vary by region or location. You should research these variations and keep them in mind as you choose a physical location for your business.

You also have different types of business entities to choose from, including a limited liability company (LLC), public limited company, branch, or liaison office. While an LLC is the most common option, your decision should depend on what type of activities you plan on conducting in Morocco. The process to set up a Morocco subsidiary will change depending on what entity you choose, but the basic steps to incorporate as an LLC include:

Getting a “Certificat Négatif” online that will register your company name with the Regional Investment Center

Establishing the company by-laws and completing the company subscription form

Freezing your paid-up capital

Filing documents to register with the Ministry of Finance for patent tax and with the Tribunal of Commerce for social security and taxation

Morocco Subsidiary Laws

Morocco has complicated subsidiary laws that apply to LLCs. While the country does not have a minimum capital requirement, partners need to set the share capital free in the by-laws, which is commonly around MAD 10,000. You need to pay 25% of the share capital when you set up your Morocco subsidiary.

Management of an LLC can include one or more natural persons. Managers should be appointed by the articles of association or a 75% majority decision among the shareholders. These individuals will make all management decisions for your company and may be held personally liable.

Finally, an LLC must file a report on management and accounts with the clerk of the Commercial Court sometime within six months of the completion of the fiscal year and within 30 days of a typical shareholders’ meeting. If you have an annual turnover that exceeds MAD 50 million, you need to appoint at least one auditor to handle these requirements for you.

Benefits of Setting up a Subsidiary in Morocco

The biggest benefit of setting up a subsidiary in Morocco is that you can start working in the country. Incorporating as an LLC can also help the parent company and the subsidiary operate independently from one another. With this type of structure, the parent company does not have to worry about incurring liability from the subsidiary, while the subsidiary is free to operate according to Morocco’s culture and laws.

Globalization Partners offers even more benefits through our Morocco subsidiary outsourcing services. We use our Employer of Record platform to handle all compliance, from ensuring employees get paid the right amount to sourcing top talent within the country’s employment laws. When you work with us, you won’t have to go through the lengthy Morocco subsidiary setup process. Instead, you can focus on growing a new company location.

What Do You Need to Set up a Subsidiary?

If you choose to set up your subsidiary alone, we recommend putting aside time and money to complete the process. You should clear your schedule for a month or two during the process in case you need to travel back and forth to Morocco or work with another executive who will do the traveling.

Since the subsidiary process can also be expensive, you should work with your accounting or finance department to ensure that you’re financially ready for the expansion. It will help to set aside the funds you need for all the steps of the Morocco subsidiary setup process so that you’re prepared for everything.

Choose Globalization Partners Today

There’s a lot to remember when you’re trying to set up a Morocco subsidiary. Let Globalization Partners help with our Morocco subsidiary outsourcing services. Contact us today to learn more.

This material has been prepared for informational purposes only, and is not intended to provide, nor should you rely on it for, legal, tax, or accounting advice in any jurisdiction. You should consult your own legal, tax, and accounting advisors as part of your expansion plans.